Cyber Risk Management

Cyber Risk
Management, is only defined as the combination of policies, personnel,
processes, and technologies that aid organizations to achieve a level of
exposure in a manner that is cost effective. Cyber-attacks continue getting
large and growing with the growing times. This is costing individuals as well
as companies millions of money. Organizations all over are struggling with
regular monitoring, communication between cyber security and business models.

Entrepreneurs and
business moguls foresee Cyber Risk management as the next evolution in security
for organizations and enterprise technology risks. This is however specific to
organizations that rely highly on digital platforms to run their businesses.
This business aspect is brought about by several trends. These include but not
limited to the following;

Continued Losses

It reaches a
moment, where a company may experience massive losses that may lead to the
detriment of the company. Many reasons might contribute to these losses. One
primary reason is the growing issue of cyber-attacks that have had a
significant challenge for many organizations globally. Criminals are devising
new and better ways of conducting their activities in a bid to cause the most
extensive damage. It has, therefore, become vital for organizations to come up
with a cyber-risk management framework that is intended to mitigate the risks
that come with cyber insecurity.

Reduced Security

In a majority of
organizations, the only available current security processes are only
addressing compliance issues, but fail to capture protectionist strategies
against cybercrime. The ever-evolving cyber threats are becoming more popular.
Compliance-focused security measures, fail to be objective and do not focus on
the core of the problem at hand. Cyber risk management, therefore, comes to be
used to improve security in organizations.

Advantages of a cyber-risk management system

Some of the
benefits of cyber-risk management is that one; it is aimed at meeting the
firm’s objective of cost-effectiveness. If an organization succeeds in managing
its risks effectively, it is most likely to lower loss instances. On this
front, it can compete effectively with other firms in the economy and hence
remain competitive. Secondly, cyber-risk management systems help in achieving
the organization’s goals.

Foundation of cyber risk management

To build a strong
foundation for cyber risk management, the following five elements are composed
of this foundation set up. These elements include one; clear decisions. These
decisions buildup on to a well-thought-of risk management framework. Secondly,
the risk management system should be cost-effective. This means that it should
aim at reducing losses incurred by the firm.

Besides, the risk management system should
relay accurate models of risk and of explicit risk management framework that
can roll over into real life. Finally, the management system should be
comparable with other risk management systems elsewhere. These systems in
different organizations help to strengthen our risk management system.

Elements of an Effective Cyber Risk Management System.

The first element
is a Risk. A risk is defined as a function of threats, controls and various
impact factors that drive the level of loss exposure. Second, is the Cyber Risk
Management system itself. This should be composed of multiple decisions and an
implementation framework. The decisions are connected to risk governance that
has to be implemented. Execution of the system hence serves as a function of
the decisions laid before. Feedback is the third and final element. The
feedback should be related to cyber threat intelligence and losses; various
metrics regard conditions that affect implementation. Feedback is essential as
it aids during the impact assessment of the cyber risk management framework.

Oliviah Nelson is an avid cybersecurity author who dives deep into technical and engineering issues in the cyber world. The author of books and articles about technology and security, Oliviah Nelson is a well respected authority.